Britain’s Services PMI Down, Pound Follows

The Great Britain pound fell today against the US dollar after a report showed that the UK services index fell more than was expected by market participants. The currency was higher against the Japanese yen.
The UK Services Purchasing Managers’ Index went down from 55.3 in March to 53.3 in April. The median forecast was 54.4. The data wasn’t all bad though. The value is above 50.0, indicating growth. Moreover, it is 16th month of expansion, suggesting that growth is quite robust. The pound is dragged down by negative fundamentals in Britain, but boosted by safe haven demand caused by the problems in Europe.
GBP/USD was down from 1.6198 to 1.6177 as of 13:46 GMT today. At the same time, GBP/JPY was up from 129.82 to 130.20.

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